Just weeks before the May 21 election, annual consumer price inflation has surged to 5.1% annually in the March quarter, well ahead of private sector wage growth of 2.4%, which remains near historic lows.
The ABS has confirmed COVID-19-driven absences of quadruple the normal level in January and almost double last month, when unemployment fell to a record-equalling 4%.
Private sector rates of pay excluding bonuses increased by 2.4% annually in the December quarter, unchanged from the September quarter, but accelerated slightly over the last three months of the year, according to the ABS.
A spike in consumer price inflation, confirmed by the ABS today, might combine with labour shortages to put pressure on wage rises, which remain near historic lows.
The FWC's minimum wage panel has revealed that it is developing a consumer price index for low paid households and a budget of discretionary items required to participate in society, while one of its members says the pandemic will make that already difficult task even more complex.
Real unit labour costs have risen for the third quarter in a row, as coronavirus-driven reductions unwind, while private sector productivity has dropped for the second time in a year, according to ABS national accounts data released today.
The CPSU has stepped up its criticism of the Morrison Government's public sector wages policy, saying it demands that workers sign up to "unknown" pay rises beyond the first year of new enterprise deals.
The ABS has delivered a small boost to hopes that wages growth might exceed restrained government projections after today's quarterly figures showed an annual lift of 1.5% across the economy.
